A financial consultant or financial adviser is an individual who offers financial advice to potential customers based on his/her financial expertise. In most countries, financial advisers must first complete certain training and then be registered with a regulatory body as well as obtain an indemnity license. The training usually takes between six months to two years, depending on the regulatory body and the potential client’s field of specialization. The license is usually granted by the relevant regulatory authority and also depends on the fees that the potential client is able to pay as consultation fees.
One of the key roles of these consultants is to help the potential client in deciding on the right investment option. For instance, financial advisors can advise on short-term and long-term investing strategies. They also play an important role in providing investment advice and market share knowledge. Financial advisers are not permitted to offer their own stock recommendations or buy, sell or trade options to their customers. On the contrary, they are restricted to recommending the approved stock broking companies, banks, mutual fund companies, and other appropriate financial products. This makes financial advisors an important part of asset allocation strategies.
Apart from offering investment advice, financial advisors may also assist the client in setting up a pension or savings account and provide necessary documentation for legal purposes. The role of these advisors may be varied depending on the client’s needs. Some of these may include estate planning advisors who advise on creating a will, protecting the interests of future generations and designing estate plans.
Other areas where financial advisors perform a crucial role includes retirement planning, protection of assets and investing in long-term care. Retirement planning generally involves setting financial goals and objectives and implementing a financial strategy to reach these goals. This includes funding a pension, saving for a house or other long-term capital expenses and investing in IRA’s and other qualified retirement plans. These goals should be attainable and not unrealistic. Financial advisors may also help their clients save for the preparation of a will, which is essential if one wants to leave something to their family. In this case, the advisor helps the client to draft a Will, which is legally binding.
Apart from investment and retirement planning, financial advisors also help individuals with estate planning. They help individuals with their financial goals, draft estate plans and ensure that everyone (ownership beneficiaries and non-owners) is properly protected. They may also help individuals with insurance needs, such as planning for the future in terms of insurance policies. Most estate planning activities are usually handled by life insurance companies, although some can also handle general estate planning. Financial advisors to make sure that all of these activities are handled smoothly and efficiently.
Financial Advisors plays an important role in today’s society. There are so many different types of financial advisors offering different services. These advisors can be found on the Internet, in publications, or in offices of lawyers and other legal practitioners. Many financial advisors offer their services on a contingency basis, which means that they charge a flat fee for any services they provided. It is important to research any financial advisor you are considering hiring to ensure they have relevant experience and training in the area of financial advice. Choosing an experienced, well-trained advisor with excellent references and track record is essential to making sure you receive quality financial advice.